Savers Value Village initiated with a Buy at UBS

UBS initiated coverage of Savers Value Village with a Buy rating and $29 price target. UBS views Savers Value Village as a compelling, less volatile way to access the apparel and home categories, telling investors in a research note that its hyper-local sourcing model and focus on secondhand merchandise insulates it from the cyclicality that others face. The firm believes Savers’ ability to grow sales yield, drive fixed cost leverage, and accelerate its operational initiatives position it well to sustain adjusted EBITDA margins in the 21%-22% range.